RBI Policy: Key Lending Rate Remains Steady At 6.5% For Tenth Consecutive Time

RBI Holds Key Lending Rate Steady at 6.5% for Tenth Time, Balancing Inflation Control and Economic Growth Amid Global Uncertainties.

Supported by

The Reserve Bank of India (RBI) has maintained its key lending rate at 6.5% for the tenth consecutive time, as announced by Governor Shaktikanta Das following the Monetary Policy Committee (MPC) meeting. This decision aims to balance inflationary pressures and robust domestic growth while addressing global economic uncertainties, including rising oil prices due to geopolitical tensions. The RBI’s focus remains on keeping inflation within its target range, with experts predicting potential easing only in December.

Monetary Policy Decision Amid Economic Pressures

During the three-day MPC meeting, Governor Das highlighted that the standing deposit facility (SDF) rate is unchanged at 6.25%, and the marginal standing facility (MSF) and Bank Rate remain at 6.75%. The RBI’s decision comes against a backdrop of an inflation target of 4% and a real GDP forecast of 7.2% for FY25. Despite recent declines in inflation rates, concerns persist about its sustainability, particularly with rising crude oil prices impacting domestic trade and inflation levels124.

Contextual Background on Interest Rates

The RBI’s repo rate has remained unchanged since February 2023, reflecting a cautious approach in light of both domestic and global economic conditions. The MPC previously raised rates significantly in response to inflation spikes, but now aims for a ‘neutral’ stance to support growth while managing inflation risks. Recent data indicates a cooling economy, with indicators such as vehicle sales and GST collections showing declines, prompting discussions about the sustainability of India’s growth momentum345.

The Logical Indian’s Perspective

At The Logical Indian, we believe that maintaining economic stability is crucial for fostering social harmony and progress. The RBI’s cautious stance reflects a commitment to balancing growth with inflation control, which is vital for ensuring a thriving economy for all citizens. As we navigate these challenging times, how do you think the RBI’s decisions will impact your daily life? We invite our readers to share their thoughts and engage in constructive dialogue on this important issue.

 

#PoweredByYou We bring you news and stories that are worth your attention! Stories that are relevant, reliable, contextual and unbiased. If you read us, watch us, and like what we do, then show us some love! Good journalism is expensive to produce and we have come this far only with your support. Keep encouraging independent media organisations and independent journalists. We always want to remain answerable to you and not to anyone else.

Leave a Reply

Your email address will not be published. Required fields are marked *

Featured

Amplified by

ITC Sunfeast - Mom's Magic

In a Season of Promotions, Sunfeast Mom’s Magic Shines with Purpose-Driven Will of Change Campaign

Amplified by

Mahindra

Nation Builders 2024 – Mahindra:  Forging a Resilient Future, Anchoring National Development

Recent Stories

India’s Swift Rescue: 75 Nationals, Including 44 Pilgrims, Evacuated from Syria Amidst Government Collapse

Did a Goods Train Really Take 3 Years to Arrive in India? Debunking the Myth

10-Year-Old Boy in Critical Condition After Receiving AB+ Blood Instead of O+ at Jaipur Hospital

Contributors

Writer : 
Editor : 
Creatives :